Eyewitnesses say Arnold Teeter came into the restaurant, laid down in a booth, then threw a menu at a waitress.
When confronted by a manager, police say Teeter threw the iguana at him which caused it to land on the floor, breaking its leg.
Teeter picked up the iguana then blocked traffic on a nearby street.
Teeter was arrested and charged with disorderly conduct and cruelty to animals.
A vet determined the iguana was suffering from metabolic bone disease and her leg fracture will require surgery to repair.